One new step in the work on our strategy’s sustainability goals in 2022 was the implementation of a double materiality assessment. To be effective in our efforts, we must be aware of what we are influencing, but also what affects us in a number of areas.
Stakeholders
Being an active part in society means that a company like Duni Group needs to not only realise our responsibilities towards others, but also being genuinely interested and curious in what is on top of their minds and what they are worried about. This goes beyond traditional stakeholder management and encourages us to be an active partner in creating common ground and shared value with our key stakeholders. We see this as a joint opportunity to create stronger societies and relationships in the long run.
Materiality assessment
In 2022, Duni Group carried out an updated materiality assessment. The idea behind it is that in order to be effective in our sustainability work, we must understand both how we affect the outside world and how it affects or may affect us in a number of areas.
To ensure that the results are still relevant, we have continuously monitored and communicated internally about the areas that were considered essential. We have also deepened our understanding of biodiversity, although it is not on the top list.
The 2022 analysis began with a document analysis and qualitative interviews with around thirty stakeholders (business partners, civil society, employees, customers, investors, NGOs, government agencies). Like the rest of our sustainability report, the materiality analysis is based on the standards established by the Global Reporting Initiative (GRI), where we follow the procedures in GRI 3.
We began by carefully reviewing topics reported by, among others, comparable companies and relevant non-governmental organizations. These topics were then tested in a survey with our stakeholder groups, (e.g. customers, suppliers, government agencies, employees and the Board. We asked open questions in semi-structured interviews. In these interviews other relevant topics emerged which we analyzed to identify central themes.
We then followed GRI's explanation of significance to determine our most important positive and negative impact areas. GRI has topic-specific standards for each of these areas.
Summary and matrix
The matrix we have compiled shows our material topics based on their importance. According to the GRI, this is determined by:
- Scale – good/bad impact
- Scope – how widespread the impact is
- Irremediability – whether it can be mitigated
- Likelihood – probability
We combined scale, scope and irremediability to determine how positive or negative the impact is or can be. Likelihood was used to compare actual, existing topics and potential impact. These were used in two axes in a chart to illustrate the result.
The further to the left or right from the center a topic is in the matrix, the more negative or positive it is. The actual impact is placed towards the top, the greater the impact, while any impact is more likely the closer to the bottom (Potential) it is. A topic that is close to the center of the axes is either not considered to be particularly significant or is not very likely to have a major impact. It is neither particularly negative nor positive.
Materiality analysis
Negative
Positive
Actual
Potential
- Inside-out influence
- Both ways influence
- Outside influence
Inside-out influence
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1. Employee well-being*
This topic includes themes such as occupational health and safety, skills development and employee well-being. It also includes the positive influence we have as a major employer in many regions. Many reporting standards (including GRI) have a strong focus on employment. To work in line with best practice, it is essential for us to report on these topics. We have a firmly rooted reputation as a good employer, and it is important that we practice what we preach (“Living the change”) to realize our strategic goals for 2030. We have updated policies for the Code of Conduct, human rights and whistleblowing. Our suppliers are covered by our Code of Conduct policies, which comply with ILO standards and UNGC principles. Internal systems for gender equality and inclusion support employees and managers in their work.
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2. Choice of materials
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3. Supply chain management*
Management of our supply chain includes global trends, such as problems caused by the pandemic and a shift towards local production. It also includes how we interact with our suppliers and address any issues upstream in the value chain, such as human rights or labor law. Our suppliers feel that we are an engaged, interested partner and we try to help them improve their business and reduce deficiencies in compliance with regulations. We work constantly to improve environmental and social sustainability in our supply chain with ongoing audits, and there are still areas for improvement even further upstream in the chain. Our Business Partner Code of Conduct and our new supplier manual for partners govern social aspects for all suppliers, and we have broadened the base of suppliers that we audit on an ongoing basis.)
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4. Energy use
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5. Anti-corruption engagement & ethics
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6. Water
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7. Pollution
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8. Production waste
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9. Biodiversity
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10. Production efficiency
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11. Adaptability
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12. Innovations
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13. Leadership ambition*
We are in a good position to drive our sector towards increased sustainability. But it requires us to go beyond the legal requirements if we are to be a true leader, and that we communicate more. We have an opportunity to tell our story to strengthen our position. This topic is crucial, as it reflects the strategy’s sustainability initiative “Living the Change”. Sustainability is at the heart of Duni Group’s identity, so it is essential that we continue to share our progress to inspire others. We have online training courses and have also appointed 17 Sustainability Leaders in the organization. Our KPI for EcoVadis score fits in here, as we are aiming for a platinum level by 2025 (top 1%), we boosted our gold level by 4 points in 2022, and are in the top 3% group.)
Both ways influence
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14. End-of-life performance*
Many of our products have a short useful life and it is often difficult to monitor what happens when the end consumer has used them. In addition, legislation (especially in the EU) is increasingly focused on topics such as littering, extended producer responsibility and recyclability. This category is part of our strategy’s sustainability initiative “Becoming Circular at Scale”, as waste management solutions such as recycling and reuse can help close the material flow’s cycle. It is therefore absolutely crucial that we address the problems and challenges of preventing and collecting waste. This will make it easier for us to comply with the proposed Packaging and Packaging Waste Regulation (PPWR) from the EU.
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15. Climate change*
All companies contribute to climate change through their activities. Consequently, this topic is extremely important as a fundemental focus. At Duni Group, we work to measure and reduce not only our direct emissions, but also indirect emissions throughout our supply chain (and communicate quarterly to our key stakeholders). The first step is to measure our Scope 3 emissions (in addition to Scopes 1 and 2), a complex task that we started in 2022. The topic of “Climate change” is still negative in the matrix and is particularly important due to its scale and the fact that the impact cannot be repaired. We are continuing to work on reducing our emissions in order to achieve our strategic goal of “Going Net Zero”. Our KPI here is the carbon intensity for Scopes 1 and 2, which is set at an index of 40 in 2025 (2019 base year), and we reached this level already in 2022.)
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16. Logistics
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17. External stakeholders’ engagement
Outside influence
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18. Regulations*
Almost everyone interviewed for our materiality analysis mentioned that legislation is increasingly focused on sustainability issues, especially in Europe. This important topic therefore incorporates the growing set of regulations in areas such as reuse, recycled content, single-use articles, plastic, litter, waste management, forestry and packaging solutions. It is essential for us to stay one step ahead of legal requirements, as they are expected to have a profound impact on many companies, including our suppliers and partners. A broad base of legislation is having an impact, and we are continuously monitoring, for example, the EU’s Plastics Directive, the Timber Regulation and producer legislation. We have also updated our policies based on collaborations and feedback from stakeholder dialogs.)
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19. Plastics’ poor reputation*
One important theme in the sustainability debate is the phasing out of single-use products made of plastic, and the questioning of how essential and viable some of our industry’s products really are. Some customer groups will always want to have single-use articles and packaging of the highest quality, but we must always consider the link between this theme and our portfolio and our brand reputation. This is why we are developing multi-use solutions while continuing to improve the sustainability performance of our products and packaging. The phase-out of virgin fossil plastic is part of our “Becoming Circular at Scale” initiative, and the goal is a 50% reduction between 2019 and 2025. In 2022, we had reduced this by 25%.)
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20. Food contact of recycled content
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21. Brand reputation
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22. Consumption patterns
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23. Single-use poor reputation
* Material topics
